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Strategies & Market Trends : Momentum Daytrading - Tricks of the Trade -- Ignore unavailable to you. Want to Upgrade?

To: Susan Saline who wrote (574)	2/21/1998 2:46:00 PM
From: Satyr	Respond to of 2120

The simple way to avoid that is to pick a point BEFORE you enter the trade that says if it hits here I'm wrong then place your stop order at the same time you place your original trade. It takes that painful decision out of your hands. You'll get whipsawed a few times but more often than not you'll save lots of time and money.

To: Susan Saline who wrote (574)	2/21/1998 2:47:00 PM
From: Terry V	Read Replies (1) \| Respond to of 2120

Susan, What a wonderful sense of humor! I am roflmao as I type this. First off, let me say, I too lost alot of money, before making those rules religion. For what it is worth, I will share the mind set that allows me tho adhere to those rules. First of all, I mentally, I no longer trade stocks. Yes, this is a trick of my mind...but it works. I only trade dollars. When a trade meets my criterion, I buy it. When it meets my sell criterion, I sell it. I don't think of buying NKE at 42, and sellin NKE at 45, I think of buying 42 based on trading perameters and selling 45 based on trading perameters. That little mind set allows me to look at each trade for nothing more than what it is...a means to increasing my capital. If my NKE trade retreats, and my trading perameters said to sell, it is easy...I'm not attached to NKE...I AM ATTACHED TO MY CAPITAL! Back when I invested in stocks...it was difficult to sell a losing position, because I was SURE that THE COMPANY was fundamentally strong, and would therefore rebound. Good luck...and never lose that tremendous sense of humor! Terry

To: Susan Saline who wrote (574)	2/21/1998 7:11:00 PM
From: dpl	Read Replies (1) \| Respond to of 2120

Susan,you should have a game plan before you place an order.Know what you will do with your position whatever it does.Therefore no surprises.Make trading as boring as possible. David

To: Susan Saline who wrote (574)	2/23/1998 2:30:00 AM
From: Tai Jin	Respond to of 2120

Sue, I too have had (and continue to have) that problem. I usually end up selling for a big loss after a protracted period of anguish. Now if I had only sold early, I could have cut my losses. The suggestion of putting in an exit point at the time of the trade would make it easier. It also reduces the mentality of not willing to admit that you made a mistake since it will be automatic. I think trading is 90% psychological and 10% technical. The techniques are easy compared to the mental discipline that's needed to trade well. ...tai